The things about risk and speculation is that -- when they come, they all come in the same time.
It is not so hard to understand this phenomena. On the surface they are theoritically different asset classes (so much about diversification), but they are owned by the same speculative hand. When the hands feel tight, they let go the most liquid asset first, thus you see now as the SH housing market showing the start of price collapse, the stock market crashed down first.
That is just the begining, the liquid ones are sold first, but it is the illiquid one that kills them. The ask will flood the market with no bid. They will try everything to fund the illiquid asset, but after a few months the source of fund will be exhausted, then there is panic, sellers stamp on each other to dump the asset at any price. That's when you can pick up the stuff for cheap provided there is not a general social chaos (I bet things will be under control).
It will get much worse for the coming 1-2 years, I dare to say 3000RMB/month rent within a year for such property -- 中平操盘实时演示 - (1010 Byte) 2005-6-08 周三, 03:14 (561 reads)
